10.13What is IPO subscription?
1What is it?
Subscription shows how many times the shares on offer were applied for. "Subscribed 20×" means bids for 20 times the shares available.
2Why does it exist?
It indicates demand. Exchanges publish it live by category during the issue.
3Calculation
Subscription = Shares bid for ÷ Shares offered
- Retail portion: 1 crore shares offered; bids for 15 crore.
- 15 ÷ 1 = 15×.
Retail subscribed 15 times.
4Risks
- Hype can drive huge subscription even for expensive IPOs.
5Quick revision
- Times shares were applied for.
- Shown by category.
- High subscription ≠ guaranteed gains.
6Knowledge check
Q1. Offered 50 lakh, bid 2 crore. Subscription?Show answer
4×.
Q2. What does undersubscribed mean?Show answer
Bids are less than the shares offered.
Q3. Where is live subscription published?Show answer
NSE/BSE websites.
See it live on MojoStox